Posted By: Jade'sFire
NEW- Charge-off loan Statement - 08/11/17 02:38 PM
I am having difficulty understanding the bureau's intent for the final periodic statement for charged-off loans “Suspension of Statements & Notice of Charge Off—Retain This Copy for Your Records.â€
The exemption requirements 41(6)(i)(A) state "charged- off the loan in accordance with loan-loss provisions and will not charge any additional fees or interest on the account"
To me, this statement means that there will be NO fees/interest charged to the borrower once this final statement is delivered. However: if you look at the next section (ii) Resuming compliance, we have a contradiction:
"If a servicer fails at any time to treat a mortgage loan that is exempt under paragraph (e)(6)(i) of this section as charged off or charges any additional fees or interest on the account, the obligation to provide a periodic statement pursuant to this section resumes."
How can a servicer be allowed to charge fees after they deliver a statement with the content "The periodic statement must clearly and conspicuously explain that, as applicable, the mortgage loan has been charged off and the servicer will not charge any additional fees or interest on the account"
Are we allowed to change the wording to address potential for future charges. For example: we charge a fee, we send another final statement with that information??
The exemption requirements 41(6)(i)(A) state "charged- off the loan in accordance with loan-loss provisions and will not charge any additional fees or interest on the account"
To me, this statement means that there will be NO fees/interest charged to the borrower once this final statement is delivered. However: if you look at the next section (ii) Resuming compliance, we have a contradiction:
"If a servicer fails at any time to treat a mortgage loan that is exempt under paragraph (e)(6)(i) of this section as charged off or charges any additional fees or interest on the account, the obligation to provide a periodic statement pursuant to this section resumes."
How can a servicer be allowed to charge fees after they deliver a statement with the content "The periodic statement must clearly and conspicuously explain that, as applicable, the mortgage loan has been charged off and the servicer will not charge any additional fees or interest on the account"
Are we allowed to change the wording to address potential for future charges. For example: we charge a fee, we send another final statement with that information??